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HONG KONG: IMMEDIATE STUDY
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SIR ARTHUR GALSWORTHY said that the recent ultimatum by the Government of the People's Republic of China appeared to have been issued in response to pressure by the local communists in Hong Kong and there was no suggestion that China was preparing to create trouble on the border of Hong Kong. It was more likely that difficulties would be created for our Mission in Peking and for Reuter's correspondent in Peking, Mr. Grey, who had been placed under house arrest.
THE CHAIRMAN said that work should now proceed rapidly on evacuation
planning in the light of the letter of 1st August from the Defence Secretary to the Commonwealth Secretary, in which the Defence Secretary had suggested that as the first step in the plaming process officials should prepare a general appreciation of the potential scope, and also the security risks,
of evacuation planning relating to Hong Kong. There would also be value in reporting to the Prime Minister, with copies to the Chancellor of the Exchequer, the First Secretary of State, the Defence Secretary and the
President of the Board of Trade, the latest assessment of the situation.
The Ministerial Committee on Hong Kong should consider separate reports
on the planning for evacuation and on the immediate action necessary on
financial and economic matters in the context of a forced withdrawal.
The note on this latter study which the Treasury had already circulated to
Departments would form the basis of the report, with the addition of
conclusions. Reference should be included in the evacuation paper, which
the Commonwealth Office should prepare, to the difficulties created by a possible flood of refugees from mainland China. The Ministerial Committee
on Hong Kong would probably meet in early September.
The Working Party -
(1) Invited the Commonwealth Office to move the Minister of State
for Commonwealth Affairs to report to the Prime Minister on the situation in Hong Kong.
(2) Invited the Commonwealth Office to circulate to the Working Party a draft paper for the Ministerial Committee on Hong Kong on the scope of evacuation plaming.
(3) Invited the Treasury to circulate a draft paper on immediate
action on financial and economic matters in the context of a forced withdrawal from Hong Kong.
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